Really?
There's benefits to being second place?
I mean, didn't Ricky Bobby's father say second place is the first loser?
Even I think Vince Lombardi once said winning isn't everything, it's the only thing.
Right.
So, Patrick, how can you do a Valuetainment episode titled The Benefits of Being Second
Place, right?
And you'll understand what I'm talking about here as I get into my message because I think
it's very important for you to realize that before Apple became first place, they were
last or second place for a long time.
Before anybody becomes first place, they're not first for a very long time, and this is
a very important strategy for you to be paying attention to today as an entrepreneur as you're
building your business because there's a lot of power behind it.
So the way I want to explain to you the power of this is by giving you a story.
In the rental car business, there are two companies that we've all heard about.
One you have Hertz, and you have Avis.
These guys rent cars for a living.
That's how they make their living, by renting cars.
Many, many years ago, Avis kept trying to beat Hertz.
So here's what they did.
They kept trying to say, "We're going to be first place.
We're going to be first place.
We're better than Hertz.
We're better than Hertz."
It didn't work.
They tried this campaign for 13 straight years.
And you know what happened for 13 straight years for Avis?
They lost money.
Not even zero.
They lost money 13 straight years.
Avis lost money.
Hertz kept making money.
They [Avis] kept losing money.
Finally the marketing team came together and said, "Listen guys.
This is not working out.
We are not first place.
Let's stop trying to do this and let's change our entire marketing plan."
And they said, "What do you have in mind?"
Well, here's what we need to do.
Are we first place?
No, Hertz is first place.
We're second place.
Yes.
Why don't we say that?
What do you mean why don't we say that?
Why don't we tell the customer we're second place?
And because we're second place, this matters to us.
You matter to us.
Has this guy lost his mind?
No, we need to do that!
Because there's two different types of customers.
What are the different types of customers?
You have customers that love underdog companies, and they always want to buy from underdog
companies.
And you have customers that always want to buy from the best.
I only buy the best!
And you know what's the difference between these two types of customers?
You ready for this?
Here's the difference.
The #1 customers are bandwagon customers.
You know how these fans always change the best, favorite team they have because it's
a new team that's wining now, so now they're the bandwagon fans.
The moment that team starts losing, now there's this fan.
Oh, I'm a Miami Heat fan.
No, no, I'm a Cleveland Cavaliers fan.
I don't care what fan I am, as long as someone's winning, I'm a fan of the number one.
Right?
But then you have the loyal fans.
Chicago Cubs, loyal fans.
Red Sox, loyal fans.
there are loyal fans.
These are loyal fans that stick around and say, "Listen, I've been a Cubs fan for 29
years.
I'm just a loyal fan, because I'm loyal to them.
Because there's a certain emotional connection to an underdog company.
There's a certain emotional connection to an underdog organization or sports team.
I'm connected to him.
I'm not emotionally connected here [number 1].
I just want to know they're the best.
And this changes all the time.
Because no one stays number one forever.
But underdog is forever.
This lasts a lifetime.
Okay?
So Avis vs. Hertz, finally this guy convinces everybody in the company that our marketing
campaign moving forward is the following.
"Avis is only second in rental cars.
So why go with us?
We try harder."
Because we try harder.
Meaning, we can't afford to lose you.
Hertz can lose you.
You're just another customer.
They have so many of them.
But we can't afford to lose you.
You mean a lot to us."
The moment they change their marketing plan to this, you know what happened?
The next year they made $1.2 million in profits, then $2.6 million of profits, then $5 million
of profits.
Then you know what happened?
A new regime came and they went back to what?
"We're going to be number one!"
and then they started losing again.
If they would have stuck to this game plan, they would have eventually passed them up.
But because they adjusted too soon, they didn't pass them up.
So it's important for you to realize as you're building your business, if you're sitting
with somebody, and your client asks you the following thing.
Your client asks you a question and they say, "Well, you know what's the difference between
you and xyz company?
They say they're number one."
Right?
You ready what you're going to say?
Here's what you're going to say.
Mr. Jones, ma'am, you are right.
They are number one.
But this is why you matter to us more.
They can afford to lose you.
See, I can't afford to lose you.
I have to do my best to make sure I earn your loyalty.
And that means a lot to me, and I hope that means a lot to you, as much as it means to
me.
Because I want to do whatever I can to make sure you are serviced properly, at the highest
possible level.
So if that's important to you, I would highly recommend you do business with me.
Does that make any sense?
Yes it does.
Can we move forward?
No problem.
Take that approach, and do not be afraid to sit with people that are gorillas.
I'm in an industry myself, where we are not number one.
There's a lot of guys bigger than us, but we are doing our part.
We are doing our part, and quietly we've been growing.
And as we sit with these other guys and we're doing our part, we have done our best to treat
our agents better than anybody else, our customers, our executives, our staff, our partners, because
it matters to us.
It matters to us!
While the guys at the top want to bully, we're coming up, is what we're doing.
And we're doing our best to take care of everybody more.
Take that approach as an entrepreneur while you're doing your business and you'll be amazed
how much more customers will love the fact that you're being transparent with them, and
how much more are they going to appreciate the fact that you're going above and beyond
everybody else to make sure you service those customers, the employees, the clients, the
partners, the vendors that I've chosen to do business with.
So with that being said, the message is, there are a lot of benefits to being second place.
This is definitely one of them.
By the way, if you eventually end up being first place, you've got to kind of adjust
your marketing strategy, just so you know that.
Because this doesn't work once you become first place.
Then you've got to have a whole different play that you got to have in order for you
to get up there.
So, Paul, let's get that pillow right here brother.
This was one of our.
. . Paul, good throw.
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And with that being said, thanks for watching everybody.
Take care.
Bye bye.